Europe SBQ (Special Bar Quality) Steel Market Size, Share & Industry Analysis, By Type (Round, Hexagon, and Square), By Application (Automotive, Construction, Transportation, Energy, and Others), and Country Forecast, 2024-2032

The Europe SBQ (special bar quality) steel market size was valued at USD 8.79 billion in 2023 and is projected to grow from USD 9.28 billion in 2024 to USD 15.30 billion by 2032, exhibiting a CAGR of 6.4% during the forecast period.

SBQ steel, which stands for Special Bar Quality steel, refers to a high-quality, specialized type of steel known for its exceptional mechanical properties, surface quality, and tight dimensional tolerances. In Europe, special bar quality steels are normally known as ‘engineering steels’. This steel grade is engineered and manufactured to meet stringent industry standards and customer specifications. It is suitable for various demanding applications across multiple sectors, such as automotive, aerospace, construction, and machinery manufacturing.

The demand in Europe is largely driven by the automotive sector, which requires high-quality steel for manufacturing critical components, such as gears, axles, and crankshafts. Additionally, the aerospace industry relies on SBQ steel for applications, including landing gear and structural components. In addition, environmental regulations and sustainability initiatives have influenced the European steel market, prompting manufacturers to adopt cleaner production processes and reduce carbon emissions. This has led to investments in innovative technologies and materials, including advanced high-strength steels.

The COVID-19 pandemic had a significant impact on the Europe SBQ steel market, particularly in 2020 and early 2021. The market faced challenges due to disruptions in supply chains, temporary shutdowns of manufacturing facilities, and decreased demand from key industries such as automotive and construction. As Europe relies on imports to meet its steel demand, disruptions in the global supply chain directly impact the availability and cost of products in the region. Steel mills faced unprecedented challenges in maintaining operations amid the pandemic-induced disruptions. Many facilities temporarily shuttered or operated at reduced capacities to comply with government regulations and ensure the safety of their workforce. The slowdown in production led to revenue losses and exacerbated existing challenges, such as excess capacity and margin pressures within the industry.

Europe SBQ Steel Market Trends

High Penetration of Products in the Automotive Sector is a Prominent Trend in the Market

Europe's automotive sector remains a leader in global innovation, design, and manufacturing excellence. Adopting SBQ steel products in automotive applications, including chassis components, engine parts, and safety reinforcements, enhances vehicle performance, fuel efficiency, and occupant protection. As automakers strive to meet stringent emissions standards and consumer preferences for lightweight yet durable vehicles, it offers a compelling solution. By leveraging SBQ steel's exceptional strength-to-weight ratio and formability, Europe can drive automotive innovation, improve manufacturing efficiency, and strengthen its competitive position in the global market.

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Europe SBQ (Special Bar Quality) Steel Market Growth Factors

Growing Industrialization is Expected to Drive Market Growth

The need for high-quality steel has become paramount as industrialization reaches new heights. Known for their superior mechanical properties and enhanced surface quality, they are extensively utilized in critical applications across automotive, aerospace, construction, and machinery sectors. The automotive industry, in particular, relies heavily on SBQ steel for manufacturing components, such as axles, gears, and crankshafts, where precision and durability are non-negotiable. The surge in Industrialization has spurred technological advancements in steel manufacturing processes. Innovations, such as electric arc furnaces (EAF) and continuous casting techniques, have revolutionized the production of SBQ steel, enabling manufacturers to achieve higher quality standards and tighter tolerances. Additionally, advanced metallurgical research has led to the development of specialty grades tailored to specific industrial needs, further fueling demand for the Europe SBQ (special bar quality) steel market growth.

RESTRAINING FACTORS

Fluctuations in Prices to Restrain Market Growth

Steel manufacturing entails various expenses, including energy costs, labor wages, and raw material procurement. Fluctuations in energy prices, particularly the soaring costs of electricity and natural gas, have added to the production expenses for steelmakers. Moreover, stringent environmental regulations and carbon pricing schemes have compelled steel producers to invest in emission-reduction technologies, increasing operational costs. Steel manufacturers pass on the additional expenses to customers as production costs rise, resulting in higher product prices. The rise in prices poses significant challenges to industry expansion in Europe. Higher input costs adversely affect the competitiveness of European manufacturers, making it more difficult for them to compete in global markets. Small and medium-sized enterprises (SMEs), in particular, may struggle to absorb the additional costs, hampering their growth prospects and hindering job creation.

Europe SBQ (Special Bar Quality) Steel Market Segmentation Analysis

By Type Analysis

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Round Segment to Hold Dominant Share Owing to its Demand from Various Applications

Based on type, the market is categorized into conventional, round, hexagon, and square.

The round segment accounted for the largest Europe SBQ (special bar quality) steel market share in 2023. Round SBQ steel is produced through processes such as cold drawing or hot rolling, which contributes to its improved mechanical properties. These are often used in manufacturing components that require toughness, precision, and high strength, such as the automotive industry, which demands high-quality steel for components such as axles, shafts, and gears to ensure safety and performance. As Europe's transition toward electric vehicles (EVs) embraces lightweight initiatives for fuel efficiency, the demand for advanced grades tailored for EV components and lightweight structures is expected to rise during the forecast period.

The square SBQ steel segment is expected to grow substantially during the forecast period. Square SBQ steel is distinguished by its superior quality, engineered for specific applications requiring high strength, durability, and precision. In Europe, this market segment plays a vital role in various industries, including automotive, aerospace, construction, and machinery manufacturing.

By Application Analysis

Automotive Segment Accounts for the Largest Share Due to its High Demand

On the basis of application, the market is segmented into automotive, construction, transportation, energy, and others.

The automotive segment accounted for the largest share of the market in 2023 and is anticipated to dominate the market during the forecast period. SBQ steel finds extensive application across various automotive components, including but not limited to crankshafts, axles, gears, suspension systems, and drive shafts. These components are critical for vehicles' performance, reliability, and safety, and their utilization ensures optimal functionality under demanding operating conditions.

The construction segment witnessed significant growth in the rubber industry during the forecast period due to the ongoing urbanization trend, and the need for modern infrastructure drives the demand for high-quality steel products.

The energy segment is anticipated to witness considerable growth during the forecast period. The increasing focus on renewable energy sources such as wind and solar power has further driven the demand in the European energy industry.

COUNTRY INSIGHTS

Geographically, the Europe SBQ steel market is studied across Germany, the U.K., France, Italy, Spain, Russia, and the rest of Europe.

Russia holds the leading market share and is anticipated to dominate the market during the forecast period. The growth of the market in the country is owed to the increasing demand from various sectors such as automotive, construction, and machinery & equipment. The automotive sector  is one of the primary consumers of SBQ steel, utilizing it in the manufacturing of various components such as gear, shafts, and crankshafts. As the automotive sector continues to grow and modernize in Russia, the demand for high-quality steel products, including SBQ, is anticipated to increase.

Germany holds a significant market share and the growth of the market in Germany is attributed to the population growth, urbanization, infrastructure development, and technological advancements in the end-use industries such as automotive, construction, energy, and others, driving the demand for SBQ steel in the country, which is likely to drive the growth of the Europe SBQ steel market.

Infrastructure projects, including transportation energy, also drive the demand for SBQ steel in the U.K. Infrastructure investment by the government and private sectors that contribute to the consumption of steel products for projects, such as bridges, railways, power plants, and pipelines, is likely to drive the market in the country.

List of Key Companies  in Europe SBQ (Special Bar Quality) Steel Market

Business Extension in the Electronic Industry is a Key Strategic Initiative Employed by Market Players

The major players operating in the Europe SBQ steel market are ArcelorMittal, Saarstahl, Danieli & C. S.p.A., METALLOINVEST MC LLC, SMS Group GmbH, and others. The companies are involved in product innovation, collaborations, capacity improvement, and acquisition in the market. Further, the companies are also involved in acquisitions, R&D activities, and steel innovations to meet consumer demands.

LIST OF KEY COMPANIES PROFILED

• ArcelorMittal (Luxembourg)


• Saarstahl (Germany)


• KOCKS (Germany)


• DanieliGroup (Italy)


• Tata Steel (India)


• AsilCelik (KOCAELİ)


• Nuova CarpenteriaOdoleseSrl (Italy)


• Metalloinvest (Russia)


• Ovako (Sweden)


• SMS Group (Germany)


• Lech-Stahlwerke (Germany)


• GeorgsmarienhütteHolding GmbH (Germany)


• Deutsche EdelstahlwerkeServices GmbH (Germany)


• AcciaierieVeneteS.p.A. (Italy)


• O.R.I. MARTIN S.P.A. (Italy)


• AFV GruppoBeltrame (Italy)


• Ascometal (France)


• Sidenor (Spain)


• Třineckéželezárny-Moravia Steel (Czech Republic)

KEY INDUSTRY DEVELOPMENTS

• December 2023: The European Commission has approved the €2.6 billion (USD 2.8 billion) in German state aid to be provided to Stahl-Holding-Saar (SHS) for its transformation to low-emission steelmaking. Plate maker Dillinger Hütte and SBQ maker Saarstahl, coming under SHS, started planning to construct a direct reduction plant and two electric arc furnaces at their sites in Dillingen and Völklingen.


• December 2023: Acciaierie Venete, an Italian long products manufacturer, has acquired three steel plants of Ascometal (a subsidiary of Swiss Steel Group) in France. The acquisition of the three steel plants will allow Acciaierie Venete to strengthen its position and increase production capacity outside Italy. This step will provide the companies with a stable future backed by shareholders with strong balance sheets and extensive industrial experience.


• February 2022: ArcelorMittal Warszawa produced 200,000 tons of unique and bar-grade steel (MBQ and SBQ) at its P20 rolling mill in 2021, a record since its establishment in 2008. In December, the H6 heat treatment line also processed a monthly record of 1,263 tons. The Warsaw-based mini-plant had previously said that high demand from the automotive sector had increased the share of SBQ bars in total sales in 2021 by 13 % points year-on-year, resulting in a multi-year record profit.


• July 2019: Liberty Steel acquired seven steel-making units and five service centers based in France and Italy from L N Mittal's ArcelorMittal in Europe for USD 800 billion.  With a total rolling capacity of over ten billion tons per year, these plants supply steel to various sectors in Europe's industrial heartlands, including infrastructure and construction products, aerospace, automotive, energy, industrial equipment, yellow goods, and consumer goods.

REPORT COVERAGE

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The market research report provides a comprehensive analysis of the industry and focuses on crucial aspects such as leading companies, types, and applications. The report also provides insights into key market trends and highlights the latest industry developments. In addition, the report includes various factors that have contributed to the market growth in recent years.

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